Ballard eliminates 39 jobs in cost-cutting move

The cuts, including one director and four managers, were announced on Tuesday by Chief Executive John Sheridan in a memorandum to employees. Seven of the positions being cut were unfilled and will be canceled.

Changes to administrative support will eliminate jobs in finance, human resources, and information technology departments, the letter said.

Ballard is also making changes to simplify its management structure by consolidating certain roles and moving to a two-segment market focus for stationary power and motive power products.

The Vancouver, British Columbia-based company said it had no further comment on the cuts.

"The global recession, and its impacts on our sales and revenue opportunities, is heightening the difficulty of the challenges," Sheridan wrote.

"To ensure that we continue to move forward with our drive to near term profitability and as well deliver on our priority goals this year, we have made strategic decisions to simplify our organizational structure to improve execution and reduce costs."

While lowering costs in a difficult economy is a positive move, BMO Capital Markets analyst Brian Piccioni said in a note on Wednesday that the job cuts may also signal that Ballard is facing a more difficult year than previously expected.

Ballard told Reuters last month that it did not expect to turn a profit in 2009, but expected "near term" profitability, which it defines as earnings before interest, tax, depreciation and amortization.

The company has forecast its 2009 revenue will increase by 15 percent to 30 percent, or $68 million to $78 million. Operating cash consumption will be cut between 7 percent and 40 percent, or $17 million to $27 million, it has said.

Ballard stock fell 1 percent on the Toronto Stock Exchange to C$1.95 and was off 4.4 percent on Nasdaq at $1.53 on Wednesday.

($1=$1.27 Canadian)

(Reporting by Susan Taylor; editing by Rob Wilson)